Passive Income: The True Meaning
Passive income is money generated that doesn’t require day-to-day management and can provide financial freedom.
By: Katie Melissa
As technology continues advancing, the way in which we live also evolves. While paying bills and going shopping were often considered chores, they can now be done at the touch of the button. To a certain degree, earning income can also be more digitized and hands-off.
I define passive income as money generated that doesn’t require day-to-day management. Examples of passive income are collecting rent on a building, offering online courses, or investing your money in stocks. Though these sources of income may take some work to get up and running, they eventually (typically) earn you money once the initial set-up is complete. It is important to note I am talking about money generated from a largely autonomous asset, NOT the IRS’s definition of Passive Income.
Why Should You Build Passive Income?
With the recent Covid-19 pandemic creating an uptick in unemployment, income generated outside of the usual employment scenarios are increasingly coveted. Passive income streams are a great supplement or even occasionally a replacement for a full-time job. And, as the full-time career model is beginning to show cracks, many millennials today are generating multiple passive income streams with online side hustles to replace or augment the nine to five monotony.
Three Reasons to Have Passive Income Streams
- Create retirement savings or save for a big expense (i.e. downpayment on a home)
- Retire early and gain financial freedom
- Protect yourself from a job loss or loss of income
The Rise of Ecommerce Stores During Covid-19
What did we learn from the pandemic? Online shopping is pandemic-proof. Ecommerce has seen extensive growth over the past year. From a psychological perspective, people are approaching the Covid-era of isolation and uncertainty by making changes to their shopping behaviors. From bulk buying (see: Costco’s growth) to online shopping (see: Amazon’s growth), people are changing what they’re buying, when, and how.
With brick-and-mortar stores floundering, ecommerce stores offer lower overhead, greater flexibility, and new opportunities for entrepreneurs. Moreover, ecommerce stores are always open and cast a wide net when it comes to customers. So, how exactly do you start an ecommerce store? And, is this form of passive income truly all passive? The term may be slightly misleading depending on the business model. Ecommerce stores still require work upfront before enjoying passive cash flows.
However, our team at Elite Automation has a proven business model including a step by step onboarding process. We know the ins-and-outs, hurdles and best practices to opening an Amazon FBA or Walmart dropshipping store. While these platforms have their issues (velocity reviews, store approvals, etc.) our clients typically begin earning return above their investment within 12 to 15 months, while targeting a 15%-25% profit margin. On average, wholesale FBA Automation client stores hold a market value over $1 million after 18-24 months of operating with us.
We offer a complimentary consultation call to explain our service. From there you can decide if our service is right for you and we can decide if you are right for our platform. Our founders are here to answer any questions you may have about Elite Automation’s e-commerce offerings and the passive income they can generate. Simply fill out this form and we’ll get back to you promptly